The Central Bank of Nigeria (CBN) has announced the removal of free Automated Teller Machine (ATM) withdrawals for customers using other banks’ ATMs. Previously, customers were allowed three free withdrawals per month before incurring charges.
In a circular dated February 10, the CBN stated that the decision was driven by increasing operational costs and the need to enhance the efficiency of ATM services.
The directive, which takes effect on March 1, 2025, eliminates the provision that allowed three free monthly withdrawals for customers using ATMs outside their bank.
Under the new policy, withdrawals from a customer’s own bank’s ATM will remain free.
However, customers withdrawing from other banks’ ATMs will now be charged N100 per N20,000 transaction if the ATM is located within bank premises. For withdrawals at off-site ATMs, an additional surcharge of up to N500 will apply.
The CBN clarified that the surcharge is an income for the ATM deployer or acquirer and must be disclosed at the point of withdrawal.
Additionally, international ATM withdrawals will be charged at the rate set by the international acquirer.
According to the CBN, the review aims to encourage the deployment of more ATMs across the country while ensuring that financial institutions apply appropriate charges for their services.
